Regulatory zone - Insurance sector

Hot topics for the insurance sector in 2011

Regulation in the insurance sector: click here for materials from our recent seminar which provided an update, from an insurance sector perspective, on the preparations for the new regulatory regime.

EIOPA’s recent report on the results of the fifth quantitative impact study for Solvency II (“QIS5”) has emphasised the growing significance of longevity risk. To read our report on ‘European life undertakings, longevity risk and Solvency II’ by Mike Munro and James Parker, Partners and founder members of the of the firm’s Life, Pensions & Longevity Risk Group, please click here.

In January 2011, the High Court considered the definition of a “contract of insurance”. It accepted FSA’s position and concluded (subject to possible appeal) that extended warranty contracts amount to contracts of insurance, even though the provider is under no obligation to pay any money. For more information, please click here to read our review of the Judgement.

We have been closely monitoring the progress of the Test Achats case, which challenged the legality of an EU Directive to permit insurers to use gender as a risk factor when setting premiums and benefits under policies. Please click here to read our review of the judgment.

The FSA has finally recognised the delay to Solvency II.  Please click here to read about the implications this will have for UK firms.

Insurance sector resources

Click here to access more detailed resources for insurers and brokers covering a host of important regulatory issues for the insurance sector such as :

- Corporate Governance
- FSA’s focus on client money
- ARROW
- PPI
- The Consumer Credit Directive
- Our seminar programme
- Articles, press-cuttings, acronym buster and Law-Nows


Regulatory reform timeline

Take a look at the regulatory reform timeline. This timeline sets out dates for key developments, such as consultation periods and publication dates for future reports and implementation dates for rule changes - colour coded to show UK, EU and international developments.


Previous materials on this topic

The insurance industry faced a huge challenge in dealing with the tougher regulatory environment of 2010. Click here to read our analysis of the key 2010 regulatory challenges facing the insurance sector.

We also analysed the “get tough” approach of the regulator - click here to read how they were expected to impact FSA enforcement, FOS and complaints handling.   

Insurance sector campaign

The insurance sector faces a real challenge in resisting regulators and policymakers who seek to impose tighter regulation on all financial institutions, including insurance, when the real concerns and problems are in the banking sector.  We produced various reports to support the campaign by the insurance sector against inappropriate read-across from banking sector reforms. Click here and here.

Europe and the CEE

‘10 things every insurer should know – Central and Eastern Europe’ (February 2010) - The aim of this brochure is to provide an informative introduction to the key constitutive elements for obtaining a presence in the Central and Eastern European market. Our extensive industry knowledge gained from working in the insurance and reinsurance market for over half a century and our long-term involvement in providing insurance expertise across CEE means that we can support you in making the most of new opportunities.

'10 things every insurer should know – Western Europe’  - This brochure provides an informative introduction to the key areas of concern for an insurer when considering establishing operations in Austria, Belgium, France, Germany, Italy, The Netherlands, Spain, Switzerland and the UK. Whilst we do not set out the definitive requirements for an insurer wishing to operate in these countries, this guide serves as a backdrop against which CMS can offer a cohesive and commercially realistic, solutions-based approach to expanding your operations.

Click here to find out more about our insurance team spanning 27 jurisdictions.

Saving tax in the insurance sector

Our tax specialists can achieve substantial tax savings and refunds for firms in the insurance sector. Find out more by clicking here. 

Client money/assets rules

FSA has flagged its belief that there is widespread non-compliance with the current client money/assets rules. Insurance brokers are on notice and facing much tougher audit requirements. In the wake of the Lehman Brothers collapse, widespread reform of the client money regime is expected with a complete review of the rules for insurance brokers under CASS 5. For more information on FSA's client money/assets expectations, click here for our report: 'Insurance brokers and client money: Time to put things in order'


Click here to return to the regulatory zone home page